NeoGenomics(NEO) - 2023 Q4 - Annual Report

Financial Performance - Consolidated revenue increased by 16.1% compared to 2022, with Clinical Services revenue up 18.4% and Advanced Diagnostics Services revenue up 5.5%[240] - Total net revenue for 2023 increased by $81.9 million, or 16.1$591.6 million compared to 2022[264] - Clinical Services revenue rose by $76.9 million, or 18.4$495.6 million in 2023, driven by increased test volume and a favorable test mix[264] - Advanced Diagnostics revenue increased by $5.0 million, or 5.5$96.0 million in 2023, primarily due to higher billings across its portfolio[265] - The net loss for the year ended December 31, 2023, was $87.968 million, a decrease from a net loss of$144.250 million in 2022, representing a 39% improvement[285] - Basic and diluted net loss per share for 2023 was $0.70, compared to$1.16 in 2022, indicating a 40% reduction in loss per share[285] - Non-GAAP Adjusted EBITDA for 2023 was $3.486 million, a significant recovery from a loss of$48.010 million in 2022[290] - The company reported a comprehensive loss of $85.743 million for 2023, compared to a comprehensive loss of$147.511 million in 2022[325] Operational Efficiency - Net cash used in operations improved by $64.0 million compared to 2022[240] - Adjusted EBITDA increased by$51.5 million to a positive $3.5 million compared to 2022[240] - Gross margin improved by 448 basis points while also enhancing turnaround time[240] - General and administrative expenses decreased by$0.3 million in 2023, representing 41.1% of revenue compared to 47.7% in 2022[271] - Research and development expenses decreased by $3.0 million in 2023, accounting for 4.6$3.5 million, or 5.2%, in 2023, primarily due to higher compensation and benefit costs[275] - Restructuring charges rose by $6.6 million, or 145.5$11.1 million, as part of a program to improve operational efficiency[277][279] Cash Flow and Liquidity - Cash used in operating activities decreased to $1.953 million in 2023 from$65.993 million in 2022, reflecting a $64.040 million improvement[291] - Cash provided by investing activities was$76.707 million in 2023, a substantial increase from cash used of $0.517 million in 2022[292] - Cash provided by financing activities decreased to$4.554 million in 2023 from $11.829 million in 2022, primarily due to a reduction in cash from stock issuance[293] - As of December 31, 2023, the company had$342.488 million in cash and cash equivalents, up from $263.180 million at the end of 2022[291] - The company expects sufficient liquidity to fund operational needs for at least the next 12 months, supported by cash on hand and marketable securities totaling$415.2 million[294] Investments and Growth Strategy - The company aims to expand its test offerings, including advanced NGS tools such as WES and WGS, to drive growth in Advanced Diagnostics[237] - The acquisition of Inivata provided oncology liquid biopsy technology capabilities, enhancing the company's testing services[247] - The Advanced Diagnostics segment supports pharmaceutical firms throughout the drug development process, from discovery to commercialization[248] - The company is committed to leveraging informatics and data-related tools to address real-world problems in oncology[238] - The company plans to invest in information technology and automation to reduce testing costs and improve value[239] - The company remains optimistic about growth opportunities in key markets despite potential inflationary pressures in 2024[299] Marketable Securities and Fair Value - As of December 31, 2023, the total fair value of marketable securities was $72,715,000, down from$174,809,000 as of December 31, 2022[394][395] - The Company reported a total of $55,485,000 in marketable securities with a maturity of one year or less as of December 31, 2023[396] - The Company’s Level 1 financial assets totaled$370,820,000 as of December 31, 2023[397] - The total gross unrealized losses for marketable securities as of December 31, 2023, were $1,486,000[394] Debt and Financing - The company recorded total long-term debt, net, of$538,198 thousand as of December 31, 2023, slightly increasing from $535,322 thousand in 2022[406] - The estimated fair value of the 0.25$262.4 million as of December 31, 2023, up from $218.2 million in 2022[406] - The Company completed the sale of$201.3 million of 2025 Convertible Senior Notes with a stated interest rate of 1.25% and a maturity date of May 1, 2025, resulting in net proceeds of approximately $194.5 million after discounts and expenses[419] - The total long-term debt as of December 31, 2023, amounts to$546.25 million, with $345 million related to the 2028 Convertible Notes and$201.25 million related to the 2025 Convertible Notes[429]